HC Deb 22 November 1966 vol 736 cc1138-9
41. Mr. David Price

asked the Chancellor of the Exchequer what techniques of investment appraisal are used by his Department in determining the economic viability of any proposal for a new computer in any part of the public service.

Mr. Diamond

All Government Departments submitting proposals for the purchase of automatic data processing equipment are required to demonstrate their economic viability using the discounted cash flow technique wherever this is appropriate.

Mr. Price

Will the right hon. Gentleman recognise that we are very pleased that the Treasury is now using the d.c.f. approach? Will he also take into account that there is that part of viability of the computer that is not economically measurable but is of importance in decision-taking?

Mr. Diamond

We will, of course, take into account the matters which the hon. Member has mentioned. I would simply add that the d.c.f. technique has been well known to the Treasury for a great number of years.